Farmer's Choice, a key player in the agricultural sector, has issued a notice to all its suppliers, including Rosemark and Choice Meats divisions, detailing a significant policy change.

Effective 1 January 2024, the company will require that all purchases, regardless of the goods or services, must be accompanied by an Electronic Tax Invoice Management system-generated invoice.

This directive applies universally, irrespective of whether the suppliers are registered for VAT.

"This amendment means that each and every purchase made by the Company of whatever goods or services must be accompanied by the required Electronic Tax Invoice Management system generated invoice, whether the suppliers of such goods or services are registered for VAT or not," the notice read.

The announcement underscores the serious repercussions of failing to comply with this new requirement

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"The effect of paying for goods and services not accompanied by a fiscalized invoice are far-reaching and numerous," the notice read.

This move is in response to the Finance Act 2023, which came into effect on 1 July 2023.

The Act introduces amendments, with some provisions becoming effective from 1 September 2023, and others, including the pivotal section 16(1) amendment, taking effect from 1 January 2024.

The amendment introduces a new paragraph (c) disallowing any expenditure or loss if the invoices of transactions are not generated from an Electronic Tax Invoice management system, except in cases where transactions have been exempted as per the Tax Procedure Act 2015.

In light of these regulatory changes, Farmer's Choice notifies all suppliers that, effective the aforementioned date, the company will no longer be able to engage in trade with suppliers of goods and services unless accompanied by the requisite Electronic Tax Invoice Management system-generated invoice.

"This serves to inform all suppliers that effective the aforementioned date the Company will no longer be able to trade with supplies of goods and services unless so accompanied," Farmers's Choice notice read.

This proactive measure aligns with Farmer's Choice's commitment to financial transparency and adherence to evolving regulatory frameworks, marking a significant step towards streamlined and compliant financial practices within the industry.

Suppliers are urged to prepare for these changes to ensure continued collaboration with Farmer's Choice.